eSports play Emerge Gaming finally closes $5m offer ahead April relisting
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Arrowhead Resources has finally completed a $5 million capital raising eight months after announcing it would transform into eSports player Emerge Gaming by acquiring multiplayer game platform Gaming Battle Ground.
eSports refers to organised, multiplayer video game competitions, often among professional players.
Emerge will join two other ASX-listed eSPorts players: eSports Mogul (ASX:ESH) which just launched online gaming platform Mogul Arena and HT&E (ASX:HT1) – the former APN News and Media – which has plans to launch a national competitive gaming league.
Emerge (still officially known as Arrow Resources ASX:AR1) told investors on Tuesday that the capital raising — 250,000,000 shares sold at 2c each — had closed oversubscribed, managed by Hunter Capital.
The biggest slice of the money ($2 million) will be used for “operations”. The rest will go towards marketing, business development, technology and working capital.
After a change in its initial prospectus, the company will now put resolutions to a vote. It is anticipating relisting in early April after a meeting of shareholders in the week prior.
Interest in the stock comes after the company signed a content distribution agreement for its Gaming Battle Ground (GBG) platform with South Africa’s biggest telco – MTN.
Under the agreement, MTN will provide the GBG Platform with access to its subscribers and marketing support while GBG will offer tournament and competition setup services.
MTN South Africa has approximately 30 million mobile phone subscribers and in its last financial year generated $4 billion in revenue.
The acquisition of GBG was first announced in June, and passed by shareholders in October — but has been held up by regulatory hurdles.
Now it has to go back to shareholders again to approve the acquisition and spinout of the former business, Tantalum International Limited (TIL).
Earlier this month TIL announced it had secured litigation funding to take the Egyptian government to court amid claims relating to the alleged expropriation of a 50 per cent interest in a southern Egypt project.
“The intent of the spin-out of TIL is to provide long-term Arrowhead shareholders with exposure to a potentially successful legal claim against Egypt,” it updated shareholders on Monday.